powerpoint presentation · expenses ures 54,848 85% 6,168 10% 1,763 3% 1,294 2% purchased power...

70,80766,576

Ele

ctr

icit

y R

eve

nu

es

= 6

9,0

09

Ele

ctr

icit

y R

eve

nu

es

= 6

4,7

24

Q1 2018 Q1 2017

1,798 1,852

54,928 51,699

14,081 13,025

Co

sts

an

d E

xp

en

ses

Cap

ital

Exp

en

dit

ure

s

54,848 85%

6,168 10%

1,763 3%

1,294 2%

Purchased Power Operating Expenses Depreciation & Amortization Other Expenses

Q1 2018 Q1 2017

2,999 2,714

Core EBITDA Reported EBITDA Core Net Income Reported Net Income

8,688 8,688

4,917 5,312

7,922 7,922

4,598 4,817

Q1 2018 Q1 2017

12.3% 6.9%12.3% 7.5% Margins 11.9% 6.9%11.9% 7.2%

Core and Reported Earnings Per Share (in PhP)

Earnings Per Share Core Earnings Per share

4.71

4.36 4.27 4.08

Q1 2018 Q1 2017

Q1 2018 Q1 2017

15,455 15,451

24,433 24,620

Current Portion Non-current Portion

TOTAL DEBT (in Million PhP)

LONG-TERM DEBT REPAYMENT SCHEDULE (in Million PhP)

40,07139,888(in Million PhP, Except Ratios) Q1 2018 Q1 2017

Cash 51,905 49,430

Gross Debt 39,888 40,071

Net Debt (12,017) (9,359)

Gross Debt/EBITDA 1.15 1.26

Net Debt/EBITDA (0.35) (0.30)

Gearing Ratio (0.17) (0.14)

Interest Expense 682 371

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

24 414

11,914

402 390 390

4,050

7,090

120 120

OPERATIONS REPORTPer fo rmance ended March 2018

Customer Count

4.8%*

6.40 million

Net System Input (NSI)

8.0%*

10,767 GWh

Energy Sales

10,145 GWh

8.9%*

Peak Demand

4.0%*

6,838 MW

Ave. Retail Rates

7.9%*

P8.46/kWhBusiness Updates

Operating Highlights

*vs. same period, previous year

**For GSL, RY2018 Period (July 1, 2017-June 30, 2018); compared with past levels (in the absence of 4RP standards/ reset)

S-Factor & GSL**

Sustained Service

Improvement

Details

CONSOLIDATED

Energy Sales: 1Q 2018 Up 8.9% vs. 2017 (+828 GWh)

7,908 8,092 9,077 9,317 10,145

2014 2015 2016 2017 2018

8.9%

2.3%

2.6%12.2%

in GWh

10.0%

INDUSTRIAL*

7.9%

COMMERCIAL

RESIDENTIAL9.2%

39.8%

30.3%

29.6%

Total sales volume for Flat Streetlights account for 0.3%, 35 GWh

Share / for 1Q 2018:

•Real Estate•Hotels & Restaurants•Retail Trade

• Increase from new and organic sales plus other factors

•Semicon•Food & Beverage•Rubber & Plastics

2,999 GWh

4,036 GWh

3,076 GWh

*incl. Generator Wheeling

CONSOLIDATED

Customer Count: 1Q 2018 Up 4.8% vs. 2017 (+290,210 customers)

5.425.63

5.846.11

6.40

2014 2015 2016 2017 2018

in Mncustomers

1.6%

INDUSTRIAL*

2.7%

COMMERCIAL

RESIDENTIAL4.9%

7.9%

0.2%

91.9%

Total customer count for Flat Streetlights account for 0.1%, 4,762

Share / for 1Q 2018:

5,879,141 customers

10,370 customers

502,985 customers

4.8%

3.9%

4.5%

3.8%

*incl. Generator Wheeling

Ave. Temperature(°C): 1Q 2018

27.2

26.7

28.4

30.3 30.5

29.5 28.7

28.3

28.5

28.4

27.8

27.7

26.2 26.2

27.6

29.3

30.129.7

28.6

28.9 28.8

28.1

27.9

27.026.6

27.127.6

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2016 2017 2018

2016 2017 2018

Ave Temp (1Q) 27.4°C 26.6°C 27.1°C

2016 2017 2018Ave Max Temp (1Q) 34.0°C 33.7°C 33.9°C

Ave. Temp for same period in 2018 continues to be higher vs. 2017

NSI*: 1Q 2018 Up 8.0% at 10,767 GWh

*Net System Input (NSI) includes:

● Power purchases of D.U. (for Captive Customers), its Local RES (for Contestable Customers)

● Other RESs (for Contestable Customers including SDC)

● Volumes for CEZ, Sunpower, Cocochem Agro-Industrial Park (CAIP)

● Export Energy from Net Metering customers

2017 2018

9,968.010,766.8

CONSOLIDATED

8.0% GWh

Meralco Peak Demand of 6,838 MW , 4.0% up

Peak Demand: 1Q 2018

2017 2018

6,577 6,838

6,973 MW2017 Peak*

Meralco YTD,

MW:

Luzon YTD Peak Demand, MW:

2017 2018

9,459 9,936

10,054 MW2017 Peak**

(Mar. 6)

4.0%

5.0%

(Mar. 24)

(Mar. 6)(Mar. 24)

*Jun 14, 2017

**May 9, 2017

Energy Sources: 1Q 2018

CONSOLIDATED

PSA32.0%

IPP26.9%

WESM12.4%

Special Contracts

1.5%

RES27.2%

SOURCE1Q 2018

GWh Share

PSAs-Total 3,444.7 32.0%

SEM-Calaca 248.0 2.3%

MPPC-Masinloc 392.7 3.6%

TLI-Pagbilao 488.2 4.5%

SMEC-Sual + CEDC 698.4 6.5%

SPPC-Ilijan 1,462.6 13.6%

Others* 154.8 1.4%

IPPs-Total 2,899.8 26.9%

QPPL-Mauban 287.6 2.7%

Sta. Rita 1,707.2 15.9%

San Lorenzo 905.0 8.4%

WESM 1,337.8 12.4%

Special Contracts** 159.4 1.5%

RESs*** 2,925.0 27.2%

TOTAL SOURCE

(NSI Equivalent)10,766.8 100%

*Include volumes from TMO, PEDC, Philpodeco and Net Metering contracts

**Include volumes for Cavite Economic Zone (CEZ), Sunpower and Cocochem Agro-Industrial Park (CAIP)

***Include volumes for MPower and Other Retail Electricity Suppliers

Natural Gas39.4%

Liquid Fuel, 0.5%*

Coal28.8%

Multi-fuel31.4%

TYPE OF FUEL1Q 2018

GWh Share

Natural Gas 4,239.5 39.4%

Liquid Fuel* 48.9 0.5%

Coal 3,099.8 28.8%

Multi-fuel** 3,378.5 31.4%TOTAL FUEL MIX

(NSI Equivalent)10,766.8 100.0%

*Replacement due to SPEX gas restriction (Feb 25-27 & Mar 10-12) and other testing activities (Jan 28, Feb 16-17).

**Coal, Hydro, Biomasss, Geothermal, et. al.; includes also WESM, CAIP, Other RESs

Fuel Mix: 1Q 2018

Average Retail Rates: 1Q 2018

PARENT

7.9% higher than 2017 average rates (+62¢/kWh); mainly due to Generation, Taxes, SL and FIT-All charges• For 2018, Generation Charge is largest component in customer’s bill at 55.3%; Meralco 16.4%; NGCP 10.0%

Generation**55.3%

Transmission10.0%

System Loss4.1%

MERALCO*16.4%

FIT-Allowance***2.2%

Taxes/ UC/ Subsidies****

12.0%

Generation**

Transmission

System Loss

MERALCO*

FIT-Allowance***

Taxes/ UC/ Subsidies****

BILL COMPONENT1Q 2017

Overall Ave, P/kWh

1Q 2018

Overall Ave, P/kWh

P/kWh

Generation Charge* 4.21 4.68 0.46

Distribution Charge**

(MERALCO)1.41 1.39 -0.02

Transmission Charge**

(NGCP)0.86 0.85 -0.01

System Loss Charge** 0.33 0.35 0.02

Taxes, Univ Charge** 0.91 1.02 0.10

FIT-All*** 0.12 0.18 0.06

TOTAL(includes generator wheeling customers

who are only charged Distribution,

Supply, and Metering charges)

7.84 8.46 0.62(7.9%)

*Generation Retail Rate applies to customers supplied by Meralco only**Other Charges are based on total captive and contestable customers in Meralco Franchise Area***Excludes contestable customers and Cavite Ecozone (CEZ)- started February 2015

(Reflects Generator Wheeling adjustments)

PARENT

System Loss Performance: March 2018, 12-MMA

SL CAP, 2010-PRESENT

8.5%

(lowest to-date)

2.59%

•Official ERC-filed Meralco System Loss, in percent, which excludes Clark Electric Distribution Corp. (CEDC)’s 12MMA system loss ending March 2018 of 2.37% and March 2017of 3.12%

6.55

6.356.19 6.21 6.23

6.13

5.91*6.00 6.08

5.91*Apr May Jun Jul Aug Sept. Oct. Nov. Dec. Jan. Feb. Mar.

Apr 2016 - Mar 2017 Apr 2017 - Mar 2018

* All-time low in 115 years

12-MMA ending March 2018 returned to all-time low of 5.91%

Improved by 5.1% vs. March 2017’s 6.23%

Lower by 2.59% pts. vs. SL cap of 8.50%

PARENT

Sustained service improvements vs. past levels*

S-Factor & GSL Performance: 1Q 2018 & RY2018 (for GSL)

SAIFI, Forced and PAI (Times)

TARGET LEVELREWARDS

(<6.98)

DEADBAND

(6.98 – 8.24)

PENALTY

(>8.24)

1Q 2018 ACTUAL 0.311

SAIDI, Pre-arranged (Minutes)

TARGET LEVELREWARDS

(<126.57)

DEADBAND

(126.57 – 198.40)

PENALTY

(>198.40)

1Q 2018 ACTUAL 15.419

CAIDI, Forced and PAI (Minutes)

TARGET LEVELREWARDS

(<144.40)

DEADBAND

(144.40 – 168.72)

PENALTY

(>168.72)

1Q 2018 ACTUAL 103.598

Prob. of Voltage Level (% not falling within limits)

TARGET LEVELREWARDS

(<0.86)

DEADBAND

(0.86 – 1.44)

PENALTY

(>1.44)

1Q 2018 ACTUAL 0.00

Ave. Time to Process App. (Days)

TARGET LEVELREWARDS

(<7.91)

DEADBAND

(7.91 – 12.28)

PENALTY

(>12.28)

1Q 2018 ACTUAL 3.080

Ave. Time to Connect (Days)

TARGET LEVELREWARDS

(<3.56)

DEADBAND

(3.56 – 5.77)

PENALTY

(>5.77)

1Q 2018 ACTUAL 2.170

Call Center performance (Secs.)

TARGET LEVELREWARDS

(<13.56)

DEADBAND

(13.56 – 21.03)

PENALTY

(>21.03)

1Q 2018 ACTUAL 3.880

System Loss (%) -12MMA

TARGET LEVELREWARDS

( < 8.50)

DEADBAND

(>8.50)

2018 ACTUAL 5.91

GSL1 : Customer experiencing a cumulative duration of

sustained service interruptions in a Regulatory Year that

exceeds the threshold

RY2018 NO. OF INCIDENCES ALLOWED(CEILING)

373,658 Customers

RY2018 ACTUAL*** 0

GSL2 : Customer experiencing a total number of sustained

interruption in a Regulatory Year that exceeds the threshold


18,989 Customers

RY2018 ACTUAL*** 0

GSL3: Restoration of supply to a customer after a fault on the

secondary distribution network taking longer that the threshold

time


234,439 Incidents

RY2018 ACTUAL*** 137

GSL4 : Connection not provided on the day agreed with the

customer


163,995 Days Delay

RY2018 ACTUAL*** 72,978Note: All actual performances are indicative*Based on 3RP Targets (4RP standards not yet available). **With exclusions*** July 1, 2017 – June 30, 2018

DetailsBusiness Updates &Other Events of Interest

Business Updates: Strengthening the Core Business: CapEx Projects(for Enhanced Capacity & Power Quality)

Expansion of Balibago 115 kV-34.5 kV

Substation (2nd Bank) (RY2018)Completed: March 26, 2018

•Aims to provide additional capacity and

relieve the critical loading of Balibago Bank

No. 1, and to improve the reliability and

lower system loss of the existing Balibago

feeders

• Will benefit our customers in Sta. Rosa,

Cabuyao and Biñan in Laguna

Inst’n of 34.5 kV Metalclad Switchgear

at NGCP-San Jose Substation (RY2016)

Completed : March 29, 2018

•Aims to unload the critical loading of the

adjacent Camarin Bank No. 1, and to

improve the reliability and lower system loss

of the over-extended Camarin Feeders

•Will benefit customers in San Jose del

Monte, Norzagaray, and Sta. Maria in

Bulacan as well as the nearby portions of

Caloocan City

Completed: April 15, 2018

Expansion of Sta. Maria 115 kV-34.5 kV

Substation (3rd Bank) (RY2017)

•Aims to relieve the critical loading of Sta.

Maria Bank No. 2, and to provide switching

flexibility, improve voltage regulation, and

lower system loss in the area

•Will benefit our customers in Sta. Maria,

Bocaue, Malolos, Balagtas, Guiguinto,

Pandi, San Jose del Monte, Angat, and

Norzagaray in Bulacan.

Business Updates: Support to Govt. Priority Projs. (Reloc, Reloc, Reloc) (Update on “BUILD, BUILD, BUILD!”)

(STATUS OF 46 DOE- SITIO ELECTRIFICATION PROJECTS (DOE E.R. 1-94 ))as of March 31, 2018

No. MOA No. Area / ProvinceNo. of Sitio

Projects

No. of

HouseholdDuration of Project Construction (Days) Status Update

1 2017EF-005 Bulacan (Norzagaray) 3 121 90 2 projects under construction

2 2017EF-003 Bulacan 4 461 90 3 projects under construction

3 2017EF-001 Batangas 7 493 906 projects under construction

1 project completed

4 2017EF-004 Laguna 17 518 15013 projects under construction

4 projects completed

5 2017EF-002 Quezon 14 687 15010 projects under construction

4 projects completed

6 2017EF-006 Rizal 1 100 90 Conducted preparatory work for project construction

Total 46 2,380 9 completed; 37 on-going

Information campaign at Brgy. Inaon,

Pulilan, Bulacan by Baliwag Business

Center

Line works at Sitio Ilaya, Brgy

Antipolo, San Pascual, Batangas

Primary and Secondary Line Stringing at Brgy. Del Valle, San Antonio, Quezon

Pole Dressing at Sitio, Kabaisan, Brgy. Kulapi, Lucban, Quezon

Business Updates: Support to Govt. Priority Projs. (Reloc, Reloc, Reloc)

Business Updates: Significant Events/ Customer Initiatives & Programs

MARCH 8, 2018

GRAND BALLROOM, SHANGRI-LA AT THE FORT BGC

ATTENDED BY 433 GUESTS

W E L C O M I N G O U R

B R I G H T E S T F U T U R E ,

TO D AY

On-site survey showed 96% positive feedback from customers


Philippine National Police

12 February 2018

Implement energy efficiency measures in police stations, i.e., preventive

maintenance, proper use of ACU

HQ to study Net Metering

50 Attendees:Logistics officers from various PNP units

90% Satisfaction rating among attendees

Meralco’s UED discussed:

Impact of TRAIN law on electricity costs

Updates on EPIRA law

Updates on systems loss reduction

Cold Chain Association of the Philippines (CCAP)

22 March 2018

While BIZ presented the offerings of Meralco Biz Partners (POP,

Channel Partnership Program )

Highlights: Highlights:


ENERGIZING PARTNERSHIP

PROGRAMS (EPP)

Bay, Laguna

March 12

Sariaya, Quezon

March 22

Ternate, Cavite

March 5

•Streetlight projects

•Extension of electrical facilities

•Brigada Eskwela

•CSR programs.

•Power-Up Forums

•Community Electrification

•Upgrade of electrical facilities

•Power Up forums

•EMC Conversion

• Job fair

•RAISE projects for 39

barangays = 2,083 HH

Luisiana, Sta. Cruz, and Victoria, Laguna

March 26

STRATEGIC PLANNING

•Community Electrification- DOE project

•Solar Project amounting to PhP 2.2M for

Municipal Hall Building (LUISIANA)

•Ongoing Relocation Site

•Brigada Eskwela

•Meralco as part of CLUP committee

•Solar Project for Municipal Hall Building

(VICTORIA)

•Additional Secondary Wires for the 13 PCAs -

with budget already as per LGU

•Membership in the Municipal Disaster Risk

Reduction Management Office

•Participation in the Mais Festival this June 2018

•Brigada Eskwela in selected schools of Tiaong,

Quezon

•Relocation of Poles along Maharlika Highway

and Maintenance of sagging wires

STRATEGIC PLANNING

Tiaong, Quezon

March 19

Highlights: Highlights:


BRIGHT IDEAS FOR RESIDENTIAL CUSTOMERS

WHIRLPOOL Intellifresh Ref: 7 day guaranteed freshness, fast ice making, low energy cost

a. Oct 2017 – Mar 2018

b. P9.15/ day cost to operate

c. Communicated via

a. Bill ad (801-2000kWh)

b. Bill insert (2001 kWh up)c. Gate banners

d. Meralco FB page

Educate customers on appliances / gadgets and technologies; Tie up with manufacturers to encourage

customers to use

PHILIPS partnership

a. Appliance highlights

b. Feb – Apr 2018

c. Communicated via

• Bill ad (2,001kWh up)

• Bill insert (801-2000kWh)

• Gate banner

• Meralco FB

Appliance SRP Discount

Steam Iron P2.93 per hour P8,995 P1,799

Pressurized Steam

Generator P4.36 per hour P18,995 P3,799

Rice / multi cooker P2.69 per use = 32 minsP5,995 P1,199

Pressure cooker P5.25 per use = 52 minsP8,995 P1,799

Cost per use


RATES INFO CAMPAIGN

For typical Residential customer consuming 200

kWh, increase of P0.97/kWh due to increase in

generation charge. To make payments more

manageable, Meralco only charged an increase of

P0.85/kWh for March.

CUSTOMER PROGRAMS

• February 15, 2018

• Unveiling of DENR EV power station, one of 3

power station projects

• DENR Central Office, Quezon City

• Feature articles appeared in websites of

TopGear Philippines and NewsBytes

Philippines

EV-olutionto a cleaner future

Mitsubishi, DENR, DTI, MServ, & Meralco

SUSTAINED LOW KEY AND

TARGETED INFO CAMPAIGN

93,522 Activated

849 customers have been activated by Mar 2018

BIZ14217%

CBG43051%

HMB27732%

1,761

2,697

4,386 4,331

2,883

3,521

4,284

5,805 6,121

3,730 3,541

5,676

2,324

632 849

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

PROJECT UPDATES30 April 2018

The information as contained herein may neither be reproduced nor used, in whole or in part, for any other purpose nor furnished to any person(s) without express written permission from MERALCO PowerGen Corporation

San Buenaventura Power Limited Co. (SBPL)

Construction of the country’s first super-critical coal-fired power project is now on its 28th

month and is expected to be completed in mid-2019.

455MW (net) Supercritical Coal-Fired Power Plant in Mauban, Quezon29

SWFGD Aeration, Intake Structure, Water Treatment and

Electrical Control Building Boiler, Control Building, STG & Transformer

Atimonan One Energy, Inc. (A1E)

The PSA with Meralco was submitted to the ERC in April 2016. Public hearings, Technical

Working Group (TWG) review and assessment of the tariff already completed.

A1E is focused on securing approval of the PSA. Project economics and timeline can

only be sustained if financial close is achieved within Q3 2018 and start of project

construction shortly afterwards.

Evaluation of the EPC bids from contractors is essentially concluded; negotiations to finalize

agreements with the preferred contractor are ongoing.

Signed mandate Letter in place for up to Php107.5B from a group of 8 local banks.

2x600 MW Ultra Supercritical Coal-Fired Power Plant in Atimonan, Quezon30


A1E has an executed Connection Agreement with the NGCP and an ERC-approved

transmission line (from Atimonan Power Plant site to the New Pagbilao Substation).

A Memorandum of Understanding with MIESCOR for the construction of the transmission

line is also in place.

The project is classified as a Committed Project by the DOE; has secured DENR’s

Environmental Compliance Certificate (ECC) and has been issued Certificate of Registration

as a Preferred Pioneer Enterprise by the Board of Investments (BOI).

The project is a key component in ensuring the country has sufficient, cost-competitive and

highly efficient power capacity for the future.



MGen established a Joint Venture with the Electricity Supply Board of Ireland (ESBI), a

leading third party service provider in O&M services worldwide, that will allow for a transfer

of skills and expertise to A1E/MGen over the life of the JV.

Regular CSR activities are in place for the benefit and development of the affected

communities and the LGU.

A1E is also facilitating proper municipal planning so that there will be a blueprint of

programs/plans for the municipality to execute when the incentives and taxes from the

project materialize.

Construction of a 1.6-km

access road to the project site

has been completed andturned over to the provincialgovernment.


Redondo Peninsula Energy, Inc. (RP Energy)

225-MW Power Supply Agreement (PSA) with Meralco submitted to ERC for approval in

April 2016. Public hearings, Technical Working Group (TWG) review and assessment of the

PSA and the tariff, and other processes completed in end-April 2017. The ERC did not

resolve the application at the end of 2017.

This restricted RP Energy’s ability to issue an NTP to the EPC Contractor; and led to the

Company’s inability to achieve financial close.

The Company still awaits the final ERC resolution on the application.

RP Energy is implementing activities to preserve the condition of the project site in

fulfillment of its obligations to the Subic Bay Metropolitan Authority.

RPE remains committed to the execution of the project. RPE is classified as a Committed

Project by the DOE, has the Environmental Compliance Certificate (ECC) from DENR and

approved and registered by BOI as a Preferred Non-Pioneer Enterprise.

2x300 MW CFB Coal-Fired Power Plant in Subic, Zambales33

St. Raphael Power Generation Corporation (SRPGC)

MGen and Semirara Mining and Power Corp. entered a Joint Venture Agreement for a 50-50 stake in the planned 2x350 MW coal power plant in Calaca, Batangas in 2016.

A PSA was signed by SRPGC and Meralco in April 2016 for 400 MW of the capacity of the

plant. The PSA is awaiting approval by the ERC.

An Environmental Compliance Certificate (ECC) for the project is already secured.

Grid Impact Study for the proposed transmission line interconnection already approved

by the NGCP.

Development activities for the project are ongoing.

2x350 MW Pulverized Coal-Fired Power Plant in Calaca, Batangas34

Other Investments

GLOBAL BUSINESS POWER CORPORATION (GBPC)

MGen holds 14% equity interest in GBPC, the largest independent power producer in the

Visayas with an existing portfolio totaling 854 MW (coal and diesel plants).

GBPC has a 50% interest in Alsons Thermal Energy Corporation (ATEC).

ATEC holds a 75% interest in a 105-MW net CFB plant in Maasim, Sarangani that started

operations in 2016; Another 105-MW CFB unit is currently under construction and targeted to be

completed by 2019.

PACIFICLIGHT POWER PTE LTD (PLP)

PLP has been operating a 2x400 MW natural gas facility in Jurong Island, Singapore since

February 2014. The facility supplies electricity to industrial and retail customers in Singapore.

MGen holds an effective 28% equity interest in PLP.

35

This presentation is prepared for the participants of the MERALCO Investors and

Analysts Briefing & Teleconference held on April 30, 2018. This presentation has

consequential limitations and is not a comprehensive discussion about Manila

Electric Company and Subsidiaries (MERALCO). The same materials are

restricted to the participants and may only be used in conjunction with the meeting

held on such date.

The information contained herein should not be quoted in whole or in part without

prior consent of MERALCO. No responsibility to any third party is accepted as the

presentation has not been prepared for and is not intended for any other purpose.

Accordingly, MERALCO makes no representation or assurance that any projected

results based on the use of these information will be realized. Investors and analysts

should not place undue reliance on these information, though presumed correct at

the time of the presentation. These information are exposed to various risks and

competitive uncertainties and contingencies which are beyond MERALCO’s control.

powerpoint presentation · expenses ures 54,848 85% 6,168 10% 1,763 3% 1,294 2% purchased power...

Documents